Resettlement Planning Document Resettlement Plan Document Stage: Final Project Number: 39419 July 2008 SRI: Clean Energy and Access Improvement Project Prepared by Ceylon Electricity Board The resettlement plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA CEYLON ELECTRICITY BOARD NATIONAL GRID DEVELOPMENT PROJECT LOAN AGREEMENT NO: RESETTLEMENT AND COMPENSATION PLAN ENVIRONMENT UNIT CEYLON ELECTRICITY BOARD COLOMBO SRI LANAKA Abbreviations ADB - Asian Development Bank BoI - Board of Investment 0C - Celsius CEA - Central Environmental Authority CEB - Ceylon Electricity Board db(A) - A-Weighted sound measurement in decibels DS - Divisional Secretary EIA - Environmental Impact Assessment EPL - Environmental Protection License GIS - Gas Insulated Substation GN - Grama Niladhari GS - Grid Substation IEC - International Electrotechnical Commission IEE - Initial Environmental Examination IPP - Independent Power Producer km - kilometer kV - kilovolt LoI - Letter of Intent m - meter mm - millimeter MOH - Medical Officer of Health MVA - Megavolt Ampere MW - Megawatt NCRE - Non-Conventional Renewable Energy NGO - Non Government Organization NIRR - National Policy on Involuntary Resettlement NEA - National Environment Act PAA - Project Approving Agency PAC - Project Approving Committee PSS/e - Power System Simulation REA - Rapid Environmental Assessment ROW - Right of Way SEA - Sustainable Energy Authority SLBC - Sri Lanka Broadcasting Corporation SPPA - Small Power Purchase Agreement SPP - Small Power Producer VRR - Victoria, Randenigala, Rantembe W - Watt Page 1 Executive Summary This Resettlement and Compensation Plan covers the proposed National Grid Development Project of Ceylon Electricity Board, Sri Lanka, scheduled for implementation from year 2008. The Project consists of three subprojects, namely (1) Construction of the new System Control Centre (2) Augmentation of Grid Substations for the Absorption of Renewable Energy, and (3) Augmentation of Eight Grid Substations, Construction of Three New Grid Substations and Construction of Four New Transmission Lines. The Project is to be implemented with credit support from the Asian Development Bank. Subprojects 2 and 3 are expected to have certain environmental and social impacts, and Initial Environmental Examinations Reports have been prepared for these two subprojects. This resettlement and compensation plan covers both subprojects 2 and 3. Collectively, subprojects 2 and 3 include the augmentation of a total of fifteen Grid Substations (GSs), construction of four new GSs and the construction of five new transmission lines over new rights-of-way. Augmentation of Fifteen GSs: All the fifteen GSs to be augmented under this project would use land space available within the existing property owned by CEB at the respective locations. Apart from relocation or modification of CEB’s own buildings within each GSs, there will be no impacts on any land or buildings owned by members of public or other institutions. In certain GSs, shifting of the perimeter fence would be required, but would not use any land beyond CEB-owned property. Land filling would be required in some GSs to prepare the available space for the construction of the augmentation. Apart from attending to any unforeseen damages (such as possible damage to local roads during material transport) that may be caused during construction, there will be no relocation or compensation issues associated with GSs to be augmented. Construction of Four New GSs: In the selection of lands for new GSs a number of optional sites have been reviewed for each GS. In order to minimize the resettlement impacts, always preference is given to the Government owned lands to avoid resettlement of private dwellings and impacts on land use. Also particular attentions is given to the convenience of access to a transmission corridor which will avoid passing through built up areas and / or areas with special environmental concerns. Accordingly lands to locate these GSs have already been earmarked, and they will all be land owned by the government or government- owned institutions. Except for one unused building in one location, all the four blocks of land to locate the new GSs are unused and they are not in productive use either for living, commercial activity or for agriculture. Apart from unforeseen issues that may arise during construction, there are no relocation and compensation issues to be addressed at this stage of project planning and approval. Construction of Five New Transmission Lines: This Resettlement and Compensation plan first explains the process of selecting the new rights-of-way for transmission lines. Initially, a number of map based routing options were considered for each new transmission line, with the primary focus on avoiding / minimizing the impacts on human settlements / built up areas, forest and wild life reserves, places of cultural / historical importance, social infrastructure (eg. playgrounds, schools, hospitals etc.) and areas of high grown trees. Among them, the Resettlement and Compensation Plan presents three best optional routes for each corridor, and compares their impacts in terms of land use, human settlements and areas of special concerns (forest reserves). Then the selected option is presented along with Page 2 an estimate of impacts. Typical impacts of new transmission corridors would be (a) loss of vegetation (b) land-use restrictions by way of limitations to building heights and height of trees (c) land-use restrictions at tower footings. CEB would not be purchasing the land along the new rights-of-way including the tower footings but would compensate the owners/users for the lost vegetation, but allow lower-height agricultural activities (such as paddy, tea, cinnamon) to continue. However, special cases would be considered and compensated accordingly. The plan then explains the process of public involvement in finalising the transmission line corridor during the environmental evaluation conducted under the Sri Lanka Environmental Act. It explains the legal process for issuing notices to the public about the planned activity and lines to be drawn across their lands, the appeal procedure and the grievance redress mechanisms, and the role and responsibilities of CEB and other government institutions in the process. It also explains the process of evaluation of damages to vegetation and agriculture, at the inception as well and during construction. Finally the report explains the monitoring mechanism for compliance by CEB staff and contractors, to the conditions stipulated in the environmental approval and the provisions in this report. As a result of careful selection of line routes that have been already identified and explained in this report, and the subsequent public consultation and the appeal procedure, this National Grid Development Project, at this stage, is not expected to cause any involuntary relocation of persons from their dwellings. CEB would ensure that maximum efforts would be made to avoid involuntary relocation even if unforeseen constraints occur in the field during setting out of the lines and tower footings. As such, this report focuses more on the aspects of compensation to land owners and users for lost vegetation and long-term restrictions on land-use along the line corridors to be established under this project. This report follows the guidelines established by the Asian Development Bank for involuntary resettlement and compensation. 3 CONTENTS 1 INTRODUCTION 8 1.1 Small Power Producers using NCRE Sources 10 1.2 Constraints of CEB Grid to Absorb Renewable Energy 11 2 PROJECT SCOPE AND LAND USE 11 2.1 Summary Scope of the Project 11 2.2 Detailed Scope of Subproject 2 13 2.2.2 Augmentation of Existing Grid Substations 13 2.2.3 Construction of New Mahiyangana GS and 132kV Transmission Line between Rantambe and Mahiyangana 14 2.3 Detailed Scope of Subproject 3 15 2.3.1 Augmentation of Existing Grid Substations 15 2.3.2 New Grid Substations 16 2.3.3 New Transmission Lines 17 2.4 Land Use for the Project 17 2.4.1 New System Control Centre and Grid Substations to be Augmented 17 2.4.2 New Transmission Lines 19 2.5 Type of Project and the Category 25 2.6 Study Methodology, Scope and Limitations 26 3 MINIMISATION OF IMPACTS AND MITIGATORY MEASURES 27 3.1 Measures to Minimise Impacts 27 3.1.1 Grid Substations to be Augmented 27 3.1.2 New Grid Substations to be Established 27 3.1.3 Strategy to Minimise Impacts of New Transmission Lines 27 3.2 Optional Routes for Transmission Lines 28 3.3 Key Effects on Resettlement and Land Use 38 3.4 Mitigation of Impacts on Selected Routes 40 4 SOCIO ECONOMIC CONDITIONS IN PROJECT AREAS 41 4.1 Subproject 2 42 4.1.1 Socio-economic Conditions along the Rantembe-Mahiyangana Line 42 4.2 Subproject 3 46 4.2.1 Socio-economic Conditions along Galle- Matara 132 kV Transmission Line 46 4.2.2 Socio-economic Conditions along Habarana-Valachchenai 132 kV Line 48 4.2.3 Socio-economic Conditions along Puttalam-Maho 132 kV Transmission Line 50 4.2.4 Socio-economic Conditions along Ukuwela-Pallekelle 132 kV Transmission Line 52 5 COMPLIANCE WITH POLICIES, LEGAL REQUIREMENTS AND PROCEDURES 54 4 5.1 Sri Lanka Legal Requirements and Procedures 54 5.1.1 Environmental Acts and Regulations 54 5.1.2 Electricity Act and Regulations 55 5.1.3 Involuntary Resettlement Policy of Sri Lanka 55 5.1.4 Environmental Approval